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Market Models
Beyond the use of risk efficiency rules, another approach to incorporating risk into agricultural decision models is to
use information implied by the financial markets. This approach is based on the theory of financial markets. However, because of the
lack of publically traded equities in agriculture, we typically rely on aggregated data and worry about barriers to entry.
Lecture XXIV: The Capital Asset Pricing Model PDF,PowerPoint,Slides
Lecture XXV: Capital Asset Pricing Model and the Arbitrage Pricing Theorem PDF, PowerPoint, Slides
Lecture XXVI: The Arbitrage Pricing Model PDF, PowerPoint, Slides
Lecture XXVII: Empirical Applications of Capital Market Models PDF, PowerPoint, Slides
Moss, Charles B. and Allen M. Featherstone. "An Empirical Investigation of Risk Diversification Opportunities Within the Farm Credit System." Proceedings of Regional Research committee NC-161 Agricultural Economics Report No. 243, North Dakota State University, January 1989.
Moss, Charles B., Richard N. Weldon, and Ronald P. Muraro. "The Impact of Risk on the Discount Rates for Different Citrus Varieties." Agribusiness: An International Journal 7(1991): 327-38.
Moss, Charles B., Richard N. Weldon, and Allen M. Featherstone. "A Simple Approach to Evaluating Risk Diversification Opportunities." Journal of the American Society of Farm Managers and Rural Appraisors 55(1991): 20-4.
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